Traders note talk that EUR/AUD sales were the root cause for the tumble in EUR/USD over the last hour or so. Hard to argue, given the price action. The sales are said to be be from sovereign names, perhaps a sign of the ongoing conundrum in which central banks find themselves: Where in the world to part their reserves?
AUD is no bargain, but it has macro tailwinds at its back solid emerging markets growth), as opposed to the euro, which seems to stumble from existential crisis to existential crisis…
AUD/USD reached 10152 earlier today, just about 30 pips below its modern-era high of 1.0182 set back in November at the height of the QE2 craze.
